Bitcoin Cash (BCH) continues to rise in value following the news of surging activity in the Bitcoin cash-Korean won (BCH/KRW) pair on Upbit, a South Korean cryptocurrency exchange.
The Bitcoin fork was already performing splendidly due to the news of EDX Markets, a new exchange backed by Fidelity, Citadel Security, and Charles Schwab, allowing the trade of the cryptocurrency on its platform.
On June 20th, EDX Markets, a new exchange backed by a few of the wealthiest financial institutions in the US, announced its launch. EDXM will only allow the trade of Bitcoin, Bitcoin Cash, LiteCoin, and Ethereum. These tokens are ones excluded from the war the SEC is waging against crypto.
Naturally, the news caused Bitcoin Cash to witness a surge in its price, increasing by 24% overnight.
Now, Upbit, a Korean crypto exchange, reports an increase in Bitcoin Cash trading volumes reaching $557.63 million in the past 24 hours. The sudden increase shows an almost 350% increase in the token’s activity on Upbit.
BCH now trades for ~$320, the highest price Bitcoin Cash has reached in over a year.
Lawrence Lewitinn, Director of Content for The Tie, a crypto data company, stated that “the BCH rally can be seen as a combination of hope and a touch of greed, two of the ingredients that often fuel market movements in the cryptocurrency space, regardless of underlying fundamentals,”
However, Lewitinn failed to mention one more key factor that may have influenced the support for Bitcoin Cash, governmental support.
It’s no secret at this point that the US Securities and Exchange Commission is waging a serious war against crypto. The regulating body is battling against the world’s biggest exchanges, including Binance, Coinbase, and Ripple.
The crux of the SEC’s argument in each case is that these exchanges are trading in what the SEC recognizes as “unregistered securities”. However, these cases never include any mention of four specific tokens: Bitcoin, Bitcoin Cash, LiteCoin, and Ethereum.
Gensler himself admitted, way before he became the SEC Chair, that these coins are “not securities”, effectively recognizing them as “commodities”. And, with that in mind, these tokens are immune to SEC attacks on the matter.
For that very reason, EDXM took the smart decision to only allow trading using those tokens. On top of that, asset management firms such as BlackRock and Fidelity are filing spot ETFs that only concern Bitcoin.
If Lewitinn is right, then BCH and Co should be on a steady trajectory towards much higher prices by the end of the year as they gain more and more interest from institutional investors.